4. We sell two products: Product #1 Product #2 Total Sales $200,000 $400,000 $600,000| Variable Expenses 120,000 350,000 470,000 Contribution Margin 80,000 50,000 130,000 CM Ratio 40% 12.5% 21.67% Fixed Expenses total $30,000. What is the breakeven point based on the current sales mix? A. $600,000 B. $75,000 C. $138,440 D. $240,000

4. We sell two products: Product #1 Product #2 Total Sales $200,000 $400,000 $600,000| Variable Expenses 120,000 350,000 470,000 Contribution Margin 80,000 50,000 130,000 CM Ratio 40% 12.5% 21.67% Fixed Expenses total $30,000. What is the breakeven point based on the current sales mix? A. $600,000 B. $75,000 C. $138,440 D. $240,000

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter6: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 4BE

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N3 nit Sales Price: $100 Unit Buying Price: $ 34 Unit Sales Premium: $ 6 Annual Rent Cost: $150.000 Annual Salaries: $350.000 Annual Advertisement Cost: $100.000 Calculate the break-even point activity and break-even point sales in dollars
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es: SALES $8 per unit $160,000 LESS: VARIABLE EXPENCES (128,000) Contribution margin $32,000 LESS: Fixed expences (44,000) Operating income (loss) $12,000 IF obrien s adversiting coast increased by 8,000 by how much would sales have to increase for the company to achieve an operating income of $6,000? a. 66,000 b.96,000 c102,000 d.130,000 e.none of above what would obrien operating income (or loss) be if fixed costs were increased by 10 percent and sales volume increased by 30percent? a. $1,290 b.$2,650 c.$6,800 d$9,680 e.none of above
Q1. Sales (30,000 units) Tk.15,00,000 Tk.50 Variable Expense 12,00,000 40 Contribution Margin 300,000 Tk. 10 Fixed Expenses 220,000 Net Operating Income 80,000 Refer to original data. Compute company’s margin of safety in both dollar and percentage form. Compute company’s degree of operating leverage at present level of sales. 7. If sales increase by 7.5%, by what percentage would you expect net operating income to increase?
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